The Supreme Court on Monday upheld the legality of clauses in employment contracts forcing employees to settle disputes with their employer individually with a third-party arbitrator.

In a 5-4 ruling, the justices said arbitration agreements, which bar employees from joining together in arbitration or a class-action lawsuit to settle disputes over wages and working conditions, are enforceable under the Federal Arbitration Act.

The high court’s ruling could significantly impact the American workforce.

The Economic Policy Institute last week said a majority of workers in the country would likely be required, as a condition of employment, to sign these agreements if the court sides with the employers, who were backed by the Trump administration.EPI found in a survey last year that 53.9 percent of nonunion private-sector employers already have mandatory arbitration procedures.

Source: Supreme Court upholds agreements that prevent employee class action suits | TheHill

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